| Investments |
Note 5. Investments The following table summarizes investment income and realized gains and losses on investments during the periods presented. | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Investment income, net of investment expenses | $ | 3,157 | | | $ | 2,681 | | | $ | 6,515 | | | $ | 5,519 | | | Realized gains on investments | 25 | | | 181 | | | 110 | | | 256 | | | Realized losses on investments | (31) | | | (197) | | | (76) | | | (300) | | | Investment income and realized gains and losses, net of investment expenses | $ | 3,151 | | | $ | 2,665 | | | $ | 6,549 | | | $ | 5,475 | |
Investments Held by Porch The following tables summarize the amortized cost, fair value, and unrealized gains and losses of investment securities. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | Amortized Cost | | Gross Unrealized | | Fair Value | | | | Gains | | Losses | | | U.S. Treasuries | | $ | 3,954 | | | $ | — | | | $ | (5) | | | $ | 3,949 | | | Obligations of states, municipalities and political subdivisions | | 2,260 | | | 6 | | | (3) | | | 2,263 | | | Corporate bonds | | 37,915 | | | 47 | | | (418) | | | 37,544 | | | Residential and commercial mortgage-backed securities | | 21,437 | | | 57 | | | (128) | | | 21,366 | | | Other loan-backed and structured securities | | — | | | — | | | — | | | — | | | Total investment securities | (1) | | $ | 65,566 | | | $ | 110 | | | $ | (554) | | | $ | 65,122 | |
____________________________________ (1)Represents total investment securities held by our captive reinsurance business as collateral for the benefit of the Reciprocal. | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Amortized Cost | | Gross Unrealized | | Fair Value | | | Gains | | Losses | | | U.S. Treasuries | $ | 13,330 | | | $ | 43 | | | $ | (3) | | | $ | 13,370 | | | Obligations of states, municipalities and political subdivisions | 2,039 | | | 31 | | | — | | | 2,070 | | | Corporate bonds | 31,123 | | | 202 | | | (46) | | | 31,279 | | | Residential and commercial mortgage-backed securities | 20,812 | | | 520 | | | (23) | | | 21,309 | | | Other loan-backed and structured securities | — | | | — | | | — | | | — | | | Total investment securities | $ | 67,304 | | | $ | 796 | | | $ | (72) | | | $ | 68,028 | |
The amortized cost and fair value of securities held by our captive reinsurance business at June 30, 2026, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | | | | | | | | | | | | | | | | | June 30, 2026 | | Remaining Time to Maturity | | Amortized Cost | | Fair Value | | Due in one year or less | | $ | 4,199 | | | $ | 4,201 | | | Due after one year through five years | | 32,970 | | | 32,735 | | | Due after five years through ten years | | 5,957 | | | 5,822 | | | Due after ten years | | 1,003 | | | 998 | | | Residential and commercial mortgage-backed securities | | 21,437 | | | 21,366 | | | Other loan-backed and structured securities | | — | | | — | | | Total | (1) | $ | 65,566 | | | $ | 65,122 | |
____________________________________ (1)Represents total investment securities held by our captive reinsurance business as collateral for the benefit of HOA.
Securities held by our captive reinsurance business with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less Than Twelve Months | | Twelve Months or Greater | | Total | | As of June 30, 2026 | | Gross
Unrealized
Loss | | Fair
Value | | Gross
Unrealized
Loss | | Fair
Value | | Gross
Unrealized
Loss | | Fair
Value | | U.S. Treasuries | | $ | (5) | | | $ | 3,949 | | | $ | — | | | $ | — | | | $ | (5) | | | $ | 3,949 | | | Obligations of states, municipalities and political subdivisions | | (3) | | | 694 | | | — | | | — | | | (3) | | | 694 | | | Corporate bonds | | (418) | | | 32,510 | | | — | | | — | | | (418) | | | 32,510 | | | Residential and commercial mortgage-backed securities | | (128) | | | 14,333 | | | — | | | — | | | (128) | | | 14,333 | | | Other loan-backed and structured securities | | — | | | — | | | — | | | — | | | — | | | — | | | Total securities | (1) | $ | (554) | | | $ | 51,486 | | | $ | — | | | $ | — | | | $ | (554) | | | $ | 51,486 | |
____________________________________ (1)Represents total investment securities held by our captive reinsurance business as collateral for the benefit of the Reciprocal. At June 30, 2026, there were 103 securities, held by our captive reinsurance business as collateral for the benefit of the Reciprocal, in an unrealized loss position. Of these securities, none had been in an unrealized loss position for 12 months or longer. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less Than Twelve Months | | Twelve Months or Greater | | Total | | As of December 31, 2025 | | Gross
Unrealized
Loss | | Fair
Value | | Gross
Unrealized
Loss | | Fair
Value | | Gross
Unrealized
Loss | | Fair
Value | | U.S. Treasuries | | $ | (3) | | | $ | 6,954 | | | $ | — | | | $ | — | | | $ | (3) | | | $ | 6,954 | | | Obligations of states, municipalities and political subdivisions | | — | | | — | | | — | | | — | | | — | | | — | | | Corporate bonds | | (46) | | | 14,563 | | | — | | | — | | | (46) | | | 14,563 | | | Residential and commercial mortgage-backed securities | | (23) | | | 3,425 | | | — | | | — | | | (23) | | | 3,425 | | | Other loan-backed and structured securities | | — | | | — | | | — | | | — | | | — | | | — | | | Total securities | (1) | $ | (72) | | | $ | 24,942 | | | $ | — | | | $ | — | | | $ | (72) | | | $ | 24,942 | |
____________________________________ (1)Represents total investment securities held by our captive reinsurance business as collateral for the benefit of the Reciprocal.
At December 31, 2025, there were thirty-nine securities in an unrealized loss position. Investments Held by the Reciprocal (Consolidated VIE) The following tables summarize the amortized cost, fair value, and unrealized gains and losses of investment securities held by the Reciprocal. | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Amortized Cost | | Gross Unrealized | | Fair Value | | | Gains | | Losses | | | U.S. Treasuries | $ | 7,326 | | | $ | 6 | | | $ | (175) | | | $ | 7,157 | | | Obligations of states, municipalities and political subdivisions | 29,154 | | | 39 | | | (398) | | | 28,795 | | | Corporate bonds | 66,950 | | | 305 | | | (1,011) | | | 66,244 | | | Residential and commercial mortgage-backed securities | 77,126 | | | 258 | | | (1,399) | | | 75,985 | | | Other loan-backed and structured securities | 19,000 | | | 57 | | | (150) | | | 18,907 | | | Total investment securities held by the consolidated VIE | $ | 199,556 | | | $ | 665 | | | $ | (3,133) | | | $ | 197,088 | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Amortized Cost | | Gross Unrealized | | Fair Value | | | Gains | | Losses | | | U.S. Treasuries | $ | 9,695 | | | $ | 40 | | | $ | (102) | | | $ | 9,633 | | | Obligations of states, municipalities and political subdivisions | 12,688 | | | 112 | | | (406) | | | 12,394 | | | Corporate bonds | 62,808 | | | 1,078 | | | (777) | | | 63,109 | | | Residential and commercial mortgage-backed securities | 77,824 | | | 1,017 | | | (873) | | | 77,968 | | | Other loan-backed and structured securities | 17,396 | | | 196 | | | (54) | | | 17,538 | | | Total investment securities | $ | 180,411 | | | $ | 2,443 | | | $ | (2,212) | | | $ | 180,642 | |
The amortized cost and fair value of securities held by the Reciprocal at June 30, 2026, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | | | | | | | | | | | | | | | | | June 30, 2026 | | Remaining Time to Maturity | | Amortized Cost | | Fair Value | | Due in one year or less | | $ | 23,384 | | | $ | 23,317 | | | Due after one year through five years | | 42,734 | | | 42,114 | | | Due after five years through ten years | | 34,258 | | | 33,816 | | | Due after ten years | | 3,054 | | | 2,949 | | | Residential and commercial mortgage-backed securities | | 77,126 | | | 75,985 | | | Other loan-backed and structured securities | | 19,000 | | | 18,907 | | | Total | | $ | 199,556 | | | $ | 197,088 | |
Securities held by the Reciprocal with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less Than Twelve Months | | Twelve Months or Greater | | Total | | As of June 30, 2026 | | Gross
Unrealized
Loss | | Fair
Value | | Gross
Unrealized
Loss | | Fair
Value | | Gross
Unrealized
Loss | | Fair
Value | | U.S. Treasuries | | $ | (17) | | | $ | 2,437 | | | $ | (158) | | | $ | 3,846 | | | $ | (175) | | | $ | 6,283 | | | Obligations of states, municipalities and political subdivisions | | (33) | | | 18,980 | | | (365) | | | 7,524 | | | (398) | | | 26,504 | | | Corporate bonds | | (122) | | | 18,577 | | | (889) | | | 17,036 | | | (1,011) | | | 35,613 | | | Residential and commercial mortgage-backed securities | | (126) | | | 21,350 | | | (1,273) | | | 30,487 | | | (1,399) | | | 51,837 | | | Other loan-backed and structured securities | | (104) | | | 7,333 | | | (46) | | | 915 | | | (150) | | | 8,248 | | | Total securities held by the consolidated VIE | | $ | (402) | | | $ | 68,677 | | | $ | (2,731) | | | $ | 59,808 | | | $ | (3,133) | | | $ | 128,485 | |
At June 30, 2026, there were 293 securities in an unrealized loss position held by the Reciprocal. Of these securities, 184 had been in an unrealized loss position for 12 months or longer as of June 30, 2026. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less Than Twelve Months | | Twelve Months or Greater | | Total | | As of December 31, 2025 | | Gross
Unrealized
Loss | | Fair
Value | | Gross
Unrealized
Loss | | Fair
Value | | Gross
Unrealized
Loss | | Fair
Value | | U.S. Treasuries | | $ | (102) | | | $ | 3,011 | | | $ | — | | | $ | — | | | $ | (102) | | | $ | 3,011 | | | Obligations of states, municipalities and political subdivisions | | $ | (361) | | | $ | 5,250 | | | $ | (45) | | | $ | 1,127 | | | (406) | | | 6,377 | | | Corporate bonds | | $ | (681) | | | $ | 13,179 | | | $ | (96) | | | $ | 1,300 | | | (777) | | | 14,479 | | | Residential and commercial mortgage-backed securities | | $ | (661) | | | $ | 15,453 | | | $ | (212) | | | $ | 1,346 | | | (873) | | | 16,799 | | | Other loan-backed and structured securities | | $ | (54) | | | $ | 1,525 | | | $ | — | | | $ | — | | | (54) | | | 1,525 | | | Total securities held by the consolidated VIE | | $ | (1,859) | | | $ | 38,418 | | | $ | (353) | | | $ | 3,773 | | | $ | (2,212) | | | $ | 42,191 | |
At December 31, 2025, there were 250 securities in an unrealized loss position. We believe there were no fundamental issues, such as credit losses or other factors, with respect to any of our available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. We expect that the securities will not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because we have the ability and intent to hold our available-for-sale investments until a market price recovery or maturity, we do not consider any of our investments to have any decline in fair value due to expected credit losses at June 30, 2026.
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